Bill advances to ensure fair compensation for customers affected by power outages

Sen. Karl Rhoads (District 13 – Dowsett Highlands, Puʻunui, Nuʻuanu, Pacific Heights, Pauoa, Punchbowl, Pālama, Liliha, Iwilei, Chinatown, and Downtown) today applauded the recent passage of Senate Bill 1648, aimed at providing fair and timely compensation to customers affected by power outages.

SB 1648 SD1 addresses the challenges faced by businesses and individuals after significant power interruptions, like those experienced by communities in downtown Honolulu and Chinatown in June 2024.

During those outages, local businesses suffered extensive losses, including spoiled inventory, equipment damage, and revenue loss.   In response, the bill proposes a new framework to compensate customers for actual damages caused by power outages.

The bill requires that when more than 1,000 customers experience a power interruption lasting four or more hours, the utility must compensate customers for their actual damages. It also allows utilities to seek a waiver from the PUC if the interruption was caused by uncontrollable factors, such as severe weather, customer tampering, or external disruptions.  

Senator Rhoads, chair of the Judiciary Committee and the primary introducer of the bill, emphasized that the bill aims to create a balanced system for determining who bears the cost of power outage damages – whether it’s independent business operators or utility shareholders.

“The goal of this bill is to determine who should pay the losses for a power outage when no one is at fault or fault cannot be determined. I don’t believe this burden should default to the shoulders of small business owners,” said Rhoads.  

SB 1648 SD1 will now be considered by the Hawaiʻi State House of Representatives.